MahaREAT: Despite The Allotment Letter Issued During The MOFA Regime, The Registered Project Will Still Be Covered Under RERA
The Maharashtra Real Estate Appellate Tribunal (Tribunal) bench, comprising Justice Shriram R. Jagtap (Judicial Member) and Dr. K. Shivaji (Technical Member), has held that even if the allotment letter has been issued to allottees under the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management, and transfer) Act, 1963 (MOFA), the real estate project...
The Maharashtra Real Estate Appellate Tribunal (Tribunal) bench, comprising Justice Shriram R. Jagtap (Judicial Member) and Dr. K. Shivaji (Technical Member), has held that even if the allotment letter has been issued to allottees under the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management, and transfer) Act, 1963 (MOFA), the real estate project will still be covered under the Real Estate (Regulation and Development) Act, 2016 (RERA) if the real estate project has been registered under RERA.
Background Facts
The appellant booked a flat in the promoter's project and received an allotment letter from the promoter on 25.11.15. The allotment letter specified the possession date as 31.03.17.
As the possession of the booked flat was delayed, the complainants approached the promoter, requesting cancellation of the allotment letter and a refund of the entire paid amount, along with interest.
Following the promoter's refusal to refund the full amount, the appellant lodged a complaint with MahaRERA.
In its order dated 21.03.20, MahaRERA held that there was no executed agreement for sale between the parties, and thus the case falls outside the scope of RERA. Therefore, cancellation would be governed by the terms outlined in the allotment letter.
The appellant filed an appeal before the Tribunal against the Authority's order dated 21.03.20.
REAT Verdict
The Tribunal, while allowing the appeal of the appellant, set aside the MahaRERA order, deeming it unsustainable.
The Tribunal held that both the sale transaction and the Allotment letter are entirely covered under the RERA Act and fall within the purview of the Act, even though the allotment letter was issued during the MOFA regime.
Furthermore, the Tribunal held that in case of conflict with the MOFA, the provisions of the RERA Act will prevail as per Section 88 of the RERA, which stipulates: “The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force”.
In conclusion, the Tribunal ruled in favor of the appellant, holding that both the sale transaction and the allotment letter fall under the purview of the RERA Act. Additionally, the Tribunal held that in the event of conflict with the MOFA, the provisions of the RERA Act will prevail, as per Section 88 of the Act.
Case: Sachin Tomar And Shivaji Tomar Vs Ensaara Metropark Luxora Infrastructure Pvt, Ltd.
Citation: Appeal No 4T004000000031625 Of 2019
Counsel For Appellant: Mr. Darshan Naik
Counsel For Respondent: Mr. Faiza Dhanani A/W. Mr. Vikramjrt Garewal